#JapanNoAdditionalOilReserveReleaseInSepOct Today's flavor in OIL market is "US diplomats are returning to Middle East".
Why is that important? It is important because news hit the tapes around 4 am EST with a decent ammo to push oil futures down.
We saw this parade too many times but it does not matter. We traded "MOU" for weeks... Pakistani Generals landing somewhere... usually at 4 am EST... oil futures went down 40% from peak... and MOU did not last even 2 weeks.
If this US Government can imagine using TGA to buy bonds, I am sure they can keep these lies and manipulations on until Strategic Petroleum Reserves hit bare minimum, which is somewhere around 70-150 million barrels.
Currently at 289 million barrels and declining around 5 million a week, it means 10 more months of lies and manipulation while some parts of the system, like diesel, falls apart. Given that the election is early November, less than 2.5 months away, these lies and manipulations will continue.
For example the last one I saw before today over the weekend was an Axios article on ZeroHedge. I used to be a follower of ZH until Covid days. Article claims that Oman Lane in Hormuz was open for business with shippings up tremendously. But, for some reason, US SPR continues to bleed....
I showed the article to a few friends.. they admit that they don't read ZH anymore.. an amazing franchise that was the go-to site, especially for financial news and now ended with Axios.
Post election might be very risky not only for oil but all sorts of assets, especially if Trump sinks Republicans in election, and decides to burn the world for distraction afterwards.$HOLO $PUNDIX $BEB
Why is that important? It is important because news hit the tapes around 4 am EST with a decent ammo to push oil futures down.
We saw this parade too many times but it does not matter. We traded "MOU" for weeks... Pakistani Generals landing somewhere... usually at 4 am EST... oil futures went down 40% from peak... and MOU did not last even 2 weeks.
If this US Government can imagine using TGA to buy bonds, I am sure they can keep these lies and manipulations on until Strategic Petroleum Reserves hit bare minimum, which is somewhere around 70-150 million barrels.
Currently at 289 million barrels and declining around 5 million a week, it means 10 more months of lies and manipulation while some parts of the system, like diesel, falls apart. Given that the election is early November, less than 2.5 months away, these lies and manipulations will continue.
For example the last one I saw before today over the weekend was an Axios article on ZeroHedge. I used to be a follower of ZH until Covid days. Article claims that Oman Lane in Hormuz was open for business with shippings up tremendously. But, for some reason, US SPR continues to bleed....
I showed the article to a few friends.. they admit that they don't read ZH anymore.. an amazing franchise that was the go-to site, especially for financial news and now ended with Axios.
Post election might be very risky not only for oil but all sorts of assets, especially if Trump sinks Republicans in election, and decides to burn the world for distraction afterwards.$HOLO $PUNDIX $BEB